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The Minimum Oracle Cloud Project Contracts Setup

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Differences exist between Cloud Project Billing and EBS Project Billing. Using Oracle Cloud Project Contracts exclusively is one of the differences. In EBS “Project Funding” we create an approved revenue budget, baseline it, setup the agreement and lastly fund the project/task.

Utilizing Oracle cloud project contracts raises questions of how the former “funding” is achieved in the cloud. Using contracts is another example of “Oracle giveth and taketh away”. One benefit of the contract is that you can publish or reference a true contract. Another is that the project’s financials are tied very tightly to the project.

The cost of having the above benefits are the learning curve and the somewhat tedious process of creating a project contract. To ease this the administrators can create contract templates for contracts. Additionally, a contract may have multiple lines. State which project/task are assigned (fka funded) to in the contract line.

When entering a contract the order of entry isn’t the order of the tabs.

Enter the general details in the Overview tab.

Next, enter Parties (customer info).

Note that the account number will not default into all of the customer related fields and you must enter or paste the number from the Bill-to Account Number field. Ship-to Account Number and Sold-to Account Number fields are not marked as required, so, you might skip over them. Be aware that these are not marked as required they are indeed required!

Moving on to setting up the Billing tab portion of the contract you will enter both a Bill Plan and a Revenue Plan.

Conversely, this directs the system as to the method an frequency of each. It is similar to the EBS billing and revenue methods. i.e. work/work, event/event, etc. Here too there is nuance in the acceptable combination of Invoice and Revenue Method Classification. Billing will default to a soft limit, but if you want a hard limit this is the place to set that.

Next, create the contract line and within the Details Associated Project tab.

Assign a project (and task if desired) to the contract line along with the Funding Amount. Lastly, and do not forget this one, submit the contract for approval. Approval can be set up to auto-approve the contract.
When you make changes to the contract change the status to Under Amendment via the Actions button/lov. This will freeze the contract until you submit the updated contract for approval and the status moves to Active again.

Contact us to see how we can assist with your Oracle Cloud Projects Contracts needs!

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Thoughts on “The Minimum Oracle Cloud Project Contracts Setup”

  1. Hi, Can we assign multiple projects to a singe contract? I think yes, if it yes, then i have a scenario

    there are A, B customers which are associated with A customer to Project A and B Customer to Project B

    now using the contract 100 USD invoice has been created therefore this invoice will be charged to which customer and on basis of what?

    Regards,
    Kapil

  2. Wallace Bartlett Post author

    Short answer is within Line Details you can associate multiple projects/tasks to a single line or assign on another contract line
    Keeping things simple, assume a Bill Plan of “Amount Based”. When the event is entered you select a contract and contract line. From this contract line selection is from where the Project Name will “look back” into the associated for that line and display accordingly.

    Through a combo of role code and bill plans along with billing to the line w/ the appropriate bill plan, you should be able to achieve what you are intending to.

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Wallace Bartlett, Sr. Solutions Architect

Wallace has been working with Oracle applications for nearly 20 years implementing domestic and international projects in roles from consultant to Director/Solution Architect. He has participated in implementation/upgrade, project oversight, pre-sales, and large complex process improvement efforts. Experience includes project and managerial accounting operations, financial planning & budgeting, payables and billing. His Oracle experience includes Project Accounting suite, Financials and process improvement within numerous industries. The list includes Professional Services, Manufacturing, Mining, Financial Services and Business Services, Communications and Media, and Automotive.

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